Share market today: The domestic market benchmark indices Sensex and Nifty 50, are expected to open in green on Wednesday amid mixed global cues.
Amidst economic crosscurrents, investors were divided on whether the market could maintain this month's surge, which left stocks in Asia uncertain of where to go after a slow US session.
Despite encouraging global indications, the benchmarks of the Indian stock market, the Nifty 50 and the Sensex, closed the day down on Tuesday, due to an all-around selloff. With recent data suggesting a slowing off in the US labor market, major Asian and European markets saw gains on Tuesday amid rekindled optimism of rate cuts by the US Fed.
The recent decline in the Indian stock market is mostly attributed to heavy selling by foreign portfolio investors (FPIs) ahead of the June 4 Lok Sabha election results.
The Nifty 50 finished 140 points, or 0.62 percent, down at 22,302.50, while the Sensex closed 384 points, or 0.52 percent, lower at 73,511.85.
Also Read: Nifty 50, Sensex today: What to expect in Indian stock market trade on May 8
According to Vinod Nair, Head of Research at Geojit Financial Services, the domesticmarket kept consolidating in spite of encouraging signals from outside the world. A number of variables, such as premium valuations and the low turnout in the current election, are contributing to profit booking in the home market. Nonetheless, FMCG continued to be the largest sectoral gainer throughout today's trading session, supported by hopes for better volume growth from rural regions thanks to favourable monsoon forecasts.
Here are key global market cues for Sensex today:
Asian Markets
Stocks in Asia struggled to find direction after a slow US session, with investors divided on whether the market can maintain this month's advance given the prevailing economic conditions, according to a Bloomberg news report.
Australia's and South Korea's stocks increased while those in Japan declined. Hong Kong futures indicated a flat open.
As per Bloomberg news report, in Asia, the main attention will be on President Xi Jinping's European tour and the subsequent development of commercial relations. As per individuals acquainted with the situation, the US has cancelled Huawei Technologies Co.'s licenses to purchase semiconductors from Qualcomm Inc. and Intel Corp., indicating another example of geopolitical strains between China and the West.
Also Read: Asia Stocks Set for Mixed Open as US Rally Falters: Markets Wrap
Gift Nifty Today
Gift Nifty was trading around 22,410.50 level, a premium of nearly 36 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US equities remained stable on Tuesday, according to an AP news report, as Wall Street trade eased after some recent major swings.
The Nasdaq Composite fell 16.69 points, or 0.10%, to 16,332.56, while the S&P 500 increased 6.96 points, or 0.13%, to 5,187.70 points. To reach 38,884.26, the Dow Jones Industrial Average increased by 31.99 points, or 0.08%.
The manufacturer of Band-Aids and Tylenol, Kenvue, had its stock rise 6.4% after exceeding analysts' expectations for earnings and revenue in the most recent quarter.
Despite delivering better-than-expected profits for its most recent quarter, The Walt Disney Co. saw a 9.5% decline. Its revenue was a little lower than anticipated, and it anticipates a slowdown in its entertainment streaming business this quarter.
Treasury Yields
This month, Treasury yields have been regressing to provide some comfort for the stock market, after surging higher at the beginning of the year as expectations for a Federal Reserve interest rate cutdwindled.
As per an AP news report, US The 10-year Treasury's yield decreased from 4.49% late Monday to 4.45%. Falling from 4.83% to 4.82%, the two-year yield tracks the Fed's projections more closely.
Also Read: US stock markets: Walt Disney shares tumble over 9% after quarterly results
Dollar Index
The dollar recovered from an early decline and was last seen stronger versus a basket of global currencies, Reuters reports. This recovery against the yen came despite fresh cautions from Japanese officials regarding their readiness to support their national currency. The euro fell 0.14% to $1.0753 while the dollar index increased by 0.3%.
Oil Prices
The American Petroleum Institute's data indicated a rise in US crude and fuel stocks, a sign of poor demand, according to market sources, which caused oil prices to drop during the first part of Wednesday's Asian trading session, according to a report by Reuters.
By 00:20 GMT, the price of a barrel of Brent crude oil futures had dropped 21 cents, or 0.3%. West Texas Intermediate oil futures for the United States dropped 0.2%, or 13 cents, to $78.25 a barrel.
Also Read: Wall Street today: US stocks advance on Fed rate cut optimism
(With inputs from agencies)
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